Small and medium-sized enterprises (SMEs) represent a key driver of economic prosperity in Prince
Edward Island. Local SME owners also represent an aging demographic group, and the need to facilitate the successful transition to a new generation of SME owners is recognized as a major local
economic development issue. The Stanford search fund concept was developed in the mid 1980s as
an investment process designed to increase the odds of younger entrepreneurs to find and present an
investment-ready SME succession transaction to a pool of potential investors. This study explores
whether the Stanford search fund concept may be applied in Prince Edward Island as a means to
facilitate local SME succession transactions. This study employed a modified policy Delphi
technique whereby local SME owner/investors were presented a detailed synopsis of the Stanford
process, and were then interviewed to solicit their opinion as to the process’ local applicability. The results of this study suggest that it may be both desirable and feasible to apply a modified version of the Stanford search fund concept in Prince Edward Island as a means to facilitate SME succession
transactions. This study also presents a set of expert panel opinion evidence with which to further explore local application of the Stanford search fund concept.

Use/Reproduction

In presenting this signature project report in partial fulfilment of the requirements for a Master of Business Administration degree from the University of Prince Edward Island, the author has agreed that the Robertson Library, University of Prince Edward Island, may make this signature project freely available for inspection and gives permission to add an electronic version of the signature project to the Digital Repository at the University of Prince Edward Island. Moreover the author further agrees that permission for extensive copying of this signature project report for scholarly purposes may be granted by the professor or professors who supervised the author’s project work, or, in their absence, by the Dean of the School of Business. It is understood that any copying or publication or use of this signature project report or parts thereof for financial gain shall not be allowed without the author’s written permission. It is also understood that due recognition shall be given to the author and to the University of Prince Edward Island in any scholarly use which may be made of any material in the author’s report.